[Congressional Record Volume 141, Number 165 (Tuesday, October 24, 1995)]
[Senate]
[Pages S15589-S15591]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  HARRY KIZIRIAN POST OFFICE BUILDING

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of H.R. 1606, just received from 
the House. 

[[Page S 15590]]

  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       A bill (H.R. 1606) to designate the United States Post 
     Office Building located at 24 Corliss Street, Providence, 
     Rhode Island as the ``Harry Kizirian Post Office Building.''

  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the bill?
  There being no objection, the Senate proceeded to consider the bill.
  Mr. PELL. Mr. President, I would like to offer my congratulations and 
say well done. I am glad Harry Kizirian is honored in this way.


                           Amendment No. 2947

(Purpose: To amend chapter 2 of title 39, United States Code, to adjust 
   the salary of the Board of Governors of the United States Postal 
                    Service, and for other purposes)

  Mr. FRIST. Mr. President, I send an amendment to the desk and ask for 
its consideration.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Tennessee (Mr. Frist), for Mr. Stevens, 
     for himself, Mr. Simon, and Mr. Pryor, proposes an amendment 
     numbered 2947.

  Mr. FRIST. Mr. President, I ask unanimous consent that reading of the 
amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       At the end of the bill add the following new section:

     SEC. 3. SALARY ADJUSTMENTS FOR THE BOARD OF GOVERNORS OF THE 
                   UNITED STATES POSTAL SERVICE.

       (a) In General.--Section 202(a) of title 39, United States 
     Code, is amended--
       (1) by inserting ``(1)'' after ``(a)'';
       (2) by striking out the fifth and sixth sentences; and
       (3) by adding at the end thereof the following new 
     paragraph:
       ``(2)(A) Each Governor shall receive--
       ``(i) a salary of $30,000 a year as adjusted by 
     subparagraph (C);
       ``(ii) $300 a day for not more than 42 days each year, for 
     each day such Governor--
       ``(I) attends a meeting of the Board of Governors; or
       ``(II) performs the official business of the Board as 
     approved by the Chairman; and
       ``(iii) reimbursement for travel and reasonable expenses 
     incurred in attending meetings and performing the official 
     business of the Board.
       ``(B) Nothing in subparagraph (A) shall be construed to 
     limit the number of days of meetings each year to 42 days.
       ``(C) Effective on the first day of the first applicable 
     pay period beginning on or after the date on which an 
     adjustment takes effect under section 5303 of title 5 in the 
     rates of pay under the General Schedule, the salary of each 
     Governor shall be adjusted by the percentage equal to the 
     percentage adjustment in such General Schedule rates of 
     pay.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the first day of the first applicable 
     pay period beginning on or after the date of the enactment of 
     this Act.
       Amend the title so as to read: ``An Act to designate the 
     United States Post Office building located at 24 Corliss 
     Street Providence, Rhode Island, as the ``Harry Kizirian Post 
     Office Building'', to amend chapter 2 of title 39, United 
     States Code, to adjust the salary of the board of Governors 
     of the United States Postal Service, and for other 
     purposes.''

  Mr. STEVENS. Mr. President, the amendment I offer today, on behalf of 
myself and Senators Simon and Pryor, would rectify a situation which 
has gone unattended for far too long. This amendment would, for the 
first time in 25 years, adjust the rate of pay for the members of the 
Board of Governors of the U.S. Postal Service.
  In 1970, as part of the Postal Reorganization Act, Congress created 
an 11-member Board of Governors whose duties are to direct and control 
the expenditures and review the practices and policies of the postal 
service. Nine of the members are private citizens who are nominated by 
the President and confirmed by the Senate to 9-year terms. They, in 
turn, name the Postmaster General and the Deputy Postmaster General who 
also serve on the board.
  The Board of Governors oversees and directs the operations of a $54 
billion corporation which ranks 12th on the Fortune 500 list. The board 
meets monthly, usually for 2 or 3 days.
  The salary of the nine confirmed members of the Board was set in 1971 
at $10,000 annually. The salary of the Postmaster General was set at 
$60,000. Today, the Postmaster General's salary is $148,000 but the 
Governors' salary has remained unchanged at $10,000. If the Governors' 
salary had increased by the rate of inflation, they would currently be 
paid $37,600.
  The Governors receive an additional $300 per day for their monthly 
meetings and reasonable travel expenses. Of course, they spend more 
time in preparation for these meetings for which they are not paid this 
daily meeting rate. In addition, members represent the Board on other 
occasions--such as testimony before Congress--for which they do not 
receive the daily rate.
  How does this compare with other boards within the Federal 
Government? Not well. For example, board members for Fannie Mae, Sallie 
Mae, and Freddie Mac all receive at least double the annual Postal 
Service Board salary. And, that doesn't take into account the much 
higher daily meeting rates they receive.
  Mr. President, I ask unanimous consent to reprint in the Record at 
this point a chart comparing the compensation of the Postal Service 
Board of Governors with Fannie Mae, Sallie Mae, and Freddie Mac.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                                                    COMPENSATION OF DIRECTORS                                                                                   
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
           Organization                        Board of Directors                              Retainer                                          Additional compensation                        
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
USPS.............................  9 Governors (nominated by the President,   $10,000..................................  $300 a day for not more than 42 days a year of meetings.               
                                    confirmed by the Senate) serving 9 year                                              Reimbursed for travel and reasonable expenses.                         
                                    terms.                                                                                                                                                      
Fannie Mae.......................  18 (13 elected annually by the common      $23,000..................................  $1,000 annually for personally attending each Board or Board committee 
                                    stockholders & 5 appointed annually by                                                meeting. Additional $500 if chairperson.                              
                                    the President).                                                                      $600 if participate by telephone conference. Additional $300 if chair  
                                                                                                                          the telephone conference.                                             
                                                                                                                         Non-management Directors are eligible to receive additional            
                                                                                                                          compensation in the form of restricted common stock, equaling $45,000 
                                                                                                                          over a five-year cycle.                                               
                                                                                                                         $1,000,000 donation to charitable groups/educational institutions of   
                                                                                                                          the director's choice upon the director's death.                      
Sallie Mae.......................  21 (14 elected annually by the common      $20,000..................................  $2,750 for attending each regular or special meeting.                  
                                    stockholders & 7 appointed annually by    $35,000 for the Chairperson of the Board   Chairperson receives $1,750 for each day spent on the Association's    
                                    the President).                                                                       business.                                                             
                                                                                                                         May elect to receive deferred compensation in the form of cash or      
                                                                                                                          common stock.                                                         
                                                                                                                         $50,000 life insurance.                                                
                                                                                                                         Eligible to participate in a special pension plan and stock purchase   
                                                                                                                          plan available to employees.                                          
                                                                                                                         Eligible to receive awards up to 100 shares of restricted common stock 
                                                                                                                          each year.                                                            
Freddie Mac......................  18 (13 elected annually by the common      $20,000..................................  Full-time officers or employees of the Federal Government do not       
                                    stockholders & 5 appointed annually by    Full time officers or employees of the      receive compensation for service on the Board                         
                                    the President).                            Federal Government do not receive the     Directors not employed by Freddie Mac receive $1,000 and out-of-pocket 
                                                                               ``retainer'' for service on the Board.     expenses for personally attending each Board or Board committee       
                                                                                                                          meeting                                                               
                                                                                                                         Committee chairpersons receive an additional retainer of $2,500        
                                                                                                                         Directors may defer cash compensation, or receive shares of Freddie    
                                                                                                                          Mac's common stock in lieu of cash compensation                       
                                                                                                                         Directors eligible to receive additional compensation in the form of   
                                                                                                                          stock options and awards of restricted common stock at fair market    
                                                                                                                          value of $10,000.                                                     
Federal Express Corp.............  14 (5 elected by the common stockholders   $30,000 for Outside Directors............  Officers of the corporation receive no compensation for serving as     
                                    & 9 appointed by the corporation).        $35,000 for Committee Chairpersons          Directors.                                                            
                                                                                                                         Outside Directors receive $2,000 for each Board meeting attended.      
                                                                                                                         Outside Directors receive $1,000 for each Committee meeting attended.  
                                                                                                                         Outside Directors granted an option for 1,000 shares of common stock   
                                                                                                                          for each of the five consecutive annual meeting dates.                
                                                                                                                         Retirement plan for Outside Directors equals an annual amount, for no  
                                                                                                                          less than 10 years and no more than 15 years, equal to the percentage 
                                                                                                                          from 50% to 100% (as determined by the ears of service) of the annual 
                                                                                                                          retainer fee.                                                         

[[Page S 15591]]
                                                                                                                                                                                                
United Parcel Service of America,  13 (12 elected by the common stockholders  $45,000 for Outside Directors............  Employees or former employees of the corporation receive no            
 Inc.                               & 1 appointed by the corporation).        $49,000 for Committee chairpersons          compensation for serving as Directors.                                
                                                                                                                         Members of the Audit, Officer Compensation and Nominating committees,  
                                                                                                                          who are not employees or former employees, receive an annual fee of   
                                                                                                                          $2,500 for each committee on which they serve.                        
                                                                                                                         Retirement plan for Outside Directors equals the amount of the         
                                                                                                                          Directors' annual retainer. Benefits continue for the number of years 
                                                                                                                          served multiplied by four.                                            
International Business Machines    11 (all elected by the common              $55,000 for Outside Directors............  Employee Directors receive no additional compensation for their service
 Corp.                              stockholders).                            $60,000 for Committee Chairpersons          on the Board.                                                         
                                                                                                                         Non-Employee Directors receive 100 promised Award Shares of IBM common 
                                                                                                                          stock plus an additional 100 year thereafter that the Director is re- 
                                                                                                                          elected.                                                              
                                                                                                                         Under the Deferred Compensation and Equity Award Plan, non-Employee    
                                                                                                                          Directors may defer all or part of their Board compensation to        
                                                                                                                          selected later years, to be paid either with interest or in promised  
                                                                                                                          fee shares of IBM common stock.                                       
                                                                                                                         Non-Employee Directors with five years service, upon retirement or age 
                                                                                                                          70, are entitled to retirement income of annual payments of 50% of the
                                                                                                                          Director's last annual fee.                                           
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


  Mr. STEVENS. Mr. President, in addition, this chart shows the 
compensation received by members of the boards of the Postal Service's 
private sector competitors like Federal Express and UPS.
  Our amendment would provide a much-needed increase in the 
compensation for the Postal Service Board of Governors. First, we 
increase the annual salary of the governors to $30,000. Second, we 
allow the daily meeting rate to be paid for performance of official 
business as determined by the chairman of the board, up to the current 
statutory limit of 42 days per year. And, third, we create an automatic 
annual pay adjustment which is equivalent to that received by Federal 
employees.
  I urge my colleagues to support this amendment.
  Mr. FRIST. Mr. President, I ask unanimous consent that the amendment 
be agreed to, the bill be deemed read a third time and passed, as 
amended, the motion to reconsider be laid upon the table, and that any 
statements relating to the bill be placed at the appropriate place in 
the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  So the bill (H.R. 1606), as amended, was deemed read for a third time 
and passed.
  Mr. FRIST. I send an amendment to the title to the desk.
       Amend the title so as to read: ``An Act to designate the 
     United States Post Office building located at 24 Corliss 
     Street Providence, Rhode Island, as the ``Harry Kizirian Post 
     Office Building'', to amend chapter 2 of title 39, United 
     States Code, to adjust the salary of the Board of Governors 
     of the United States Postal Service, and for other 
     purposes.''

                          ____________________